Skip to comments.Reports of Gannett and MediaNews Joining to Bid on KR Continue (Dinosaur Media Extinction Alert)
Posted on 02/08/2006 2:06:18 PM PST by abb
By E&P Staff
Published: February 08, 2006 7:45 AM ET
NEW YORK Reports continue today that MediaNews Group is discussing a possible alliance with Gannett to acquire Knight Ridder, which has put itself up for sale under pressure from shareholders.
Even so, it is unclear if the aim would be to buy all or parts of the newspaper company and its 32 papers.
MediaNews needs partners to finance a bid for Knight Ridder and has already teamed up with three private equity firms. Knight Ridder spokesman Polk Laffoon declined to comment on a possible Gannett-MediaNews alliance.
Other possible buyers include the McClatchy newspaper company and two groups of private equity firms.
"MediaNews, a 40-newspaper chain run by William Dean Singleton, has retained at least one former Gannett executive to advise it on the deal," Knight Ridder's Mercury News (San Jose, Ca.) has reported.
Morgan Stanley newspaper analyst Douglas Arthur told the San Jose paper that an alliance between MediaNews and Gannett would have advantages for both parties.
"From a conceptual point of view it makes sense, given that the companies have worked together in the past," Arthur said when asked whether such a deal was likely.
The San Jose paper added: "Potential buyers have begun visiting Knight Ridder newspapers, essentially kicking the tires before deciding whether to buy and how much to bid, according to a source familiar with the visits." E&P Staff (firstname.lastname@example.org)